Rolls Royce Share Price and buyback follow 2025 full-year results
Rolls-Royce published its 2025 full year results, setting out upgraded mid-term targets and a £7bn-£9bn share buyback for 2026–2028 with £2. 5bn to be completed this year. rolls royce share price
Rolls Royce Share Price and the £7bn-£9bn buyback
The company announced a share buyback programme sized at £7bn-£9bn covering 2026–2028, with £2. 5bn earmarked to be completed this year. The statement ties the buyback to a strong balance sheet, significant investment to support long-term growth and confidence in the future.
Tufan Erginbilgic outlines transformation, 2026 guidance and upgraded mid-term targets
Chief executive Tufan Erginbilgic said the group’s "transformation continues with pace and intensity, " adding that the company was "consistently achieving outcomes that were not possible before our transformation. " He said the business has new capabilities and a new mindset, has navigated challenges from supply chain to tariffs, and "delivered a strong performance in 2025, all while we built the foundations for significant growth for years to come. "
Based on 2026 guidance, the group expects to deliver underlying operating profit within the prior mid-term guidance range two years earlier than planned. The release set upgraded mid-term targets of underlying operating profit of £4. 9bn-£5. 2bn and free cash flow of £5. 0bn-£5. 3bn, and said the company sees "significant growth from existing businesses as well as from new business opportunities. "
Dividend timing, reinvestment plan and the £277m tax credit adjustment
The release confirmed the dividend will be paid on 3 June 2026 to ordinary shareholders on the register on 24 April 2026, and that shareholders will be offered a dividend reinvestment plan; further details are referenced to note 7, page 34. It also said that in 2025 the Group recognised a £277m credit to underlying profit after tax in respect of deferred tax assets on UK tax losses. That £277m credit has been adjusted in the calculation of earnings per share, the proposed dividend payout ratio, and return on capital; further details are referenced to note 5, page 33.
Accounting notes, reconciliations and return on capital definition
The company stated that all underlying income statement commentary is provided on an organic basis unless otherwise stated, and that a reconciliation of alternative performance measures to their statutory equivalent is provided on pages 52 to 55. The release also noted that adjusted return on capital is defined on page 55 and is abbreviated to return on capital.
Strategic pillars, lower carbon and advantaged businesses
Rolls-Royce said its strategic framework is founded on four strategic pillars and that it has made significant progress against each of these pillars over the past three years, including in 2025. The document listed strategic initiatives including "Advantaged businesses & strategic initiatives" and "Lower carbon & digitally enabled businesses, " and said these strategic initiatives are continuing to expand the earnings and cash potential of the business. The company added: "We expect significant further progress in 2026. "
Operational scope and corporate purpose
In its statement Rolls-Royce described its purpose and scope: "We develop and deliver complex power and propulsion solutions. " It reiterated that it develops and delivers complex power and propulsion solutions for safety-critical applications in the air, at sea and on land, and that its products and service packages enable customers to connect people, societies, cultures and economies together. The release said the company has been at the forefront of innovation for more than 100 years, helping to power, protect and connect the modern world, and invited readers to "Help us deliver better power for our changing world. " The release was presented as updates and news from around the Rolls-Royce businesses.
